Lynas Hits Heavy Rare Earth Milestone with First Dysprosium Production Outside China

Key Highlights:

• Lynas achieves first separated Dysprosium production outside China
• Greencape Capital increases stake to 6.11%, signaling investor confidence
• Market responds cautiously; shares dip 0.86% to $8.06
   

In a landmark development for the rare earths industry, Lynas Rare Earths Ltd (ASX: LYC) has announced its first production of separated Dysprosium Oxide (Dy) at its Malaysian facility—cementing its status as the only commercial producer of separated heavy rare earths (HREs) outside China .

Separated Dy produced at Lynas Malaysia 

 Source: Lynas ASX announcement 

The company’s new heavy rare earth separation circuit, commissioned during Q1 2025, has successfully begun producing Dysprosium, with Terbium (Tb) production slated for June. The initiative aims to address critical supply chain vulnerabilities and reduce global reliance on Chinese producers, a strategic move applauded by key customers in Japan, the U.S., and Europe.

CEO Amanda Lacaze noted, “This is a significant step in building resilient global supply chains. Our ability to deliver on-spec Dy gives customers the option to source from outside China, a vital diversification effort as global demand for magnet metals accelerates.”

The announcement comes alongside a substantial shareholder update, with Greencape Capital Pty Ltd lifting its holding in Lynas from 5.01% to 6.11%. The move signals growing institutional confidence in Lynas’s growth trajectory and its strategic positioning within the rare earths sector.

Despite the milestone, Lynas shares edged 0.86% lower to $8.06 during Friday trade, reflecting broader market caution. The stock remains up over 25% year-to-date, buoyed by positive operational milestones and long-term demand forecasts for rare earth elements used in electric vehicles, wind turbines, and defense technologies.

With pricing expected to reflect strong demand for HREs outside China, Lynas’s recent advancements could help shape a more balanced and diversified global rare earths market. The company now enters a pivotal phase, seeking to leverage its technological edge and secure long-term offtake agreements across international markets.

As global trade tensions and green energy transitions intensify, Lynas appears well-placed to capitalise on its first-mover advantage in heavy rare earth separation outside China.